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British-based clearing houses should not be forced to move to the European Union after Brexit, a senior European Parliament lawmaker has said in a sign of a softening of Brussels’ hardline stance over the institutions' euro transactions.

The EU is mulling changes to its rules for clearing houses, the majority of which are in London, which could lead the biggest being forced to establish EU headquarters.

More than 90pc of the most important derivatives transactions in euros are cleared by British-based clearing houses, which, after Brexit, will be outside the EU.

On Wednesday, Danuta Hübner, the lead MEP on the draft law struck a more conciliatory tone, which reflects a growing recognition in...